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1ST DEC 2008
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Student Loans are available to help with your living costs - accommodation, food, clothing, travel etc�?�
 In brief:
25% of the loan is based on your income. Interest is linked to inflation, so what you repay will be worth what you borrowed.
You only start repaying after leaving college or university and at a reasonable rate, for example £15 a month when your income is £12,000 a year.
Introduction
This is a Government loan to help you with your living costs. You should apply to your Local Education Authority for a loan at the same time that you apply for support towards tuition fees. The loan becomes repayable from the April after you leave the University and interest is linked only to inflation, not to commercial lending rates. Repayment is at a rate of 9% of your income and you will not begin to start repayments until your gross income reaches £10,000 per annum (current figures).
Your Local Education Authority will assess the amount of loan you are entitled to and ask you how much of that you wish to apply for. All students will be entitled to apply for 75% of the loan but the remaining 25% is means tested. You do not have to apply for the whole amount of the loan straight away - you will have a second opportunity to apply later in the academic year. You will receive the loan in three instalments. The first instalment will be a cheque that you can collect from Registry at the start of the autumn term. The remaining instalments will be paid directly in to your bank or building society account.
Eligibility
Full-time students aged up to 54. You can get a loan even if they have previously studied in higher education. If they are aged 50-54 you will have to sign to say that you intend to work after your course.
The Bottom Line �?? How much?
Up to £3,905 in 2002/03 (£4,815 for those in London; £3,090 for those living at home). 75% of this is the basic entitlement, as it doesn't depend on your or your family's income.
How is it paid?
Your loan is paid in three instalments by the Student Loans Company (SLC). Payments are either made by cheque or directly into your bank or building society. You will receive a payment schedule from the SLC, which tells you how you will get your money.
The table below shows the maximum loan that you could have got in 2001/02. It also shows the maximum amounts that do and do not depend on your and your family's income. These amounts are lower in the final year of your course as the loan does not cover the summer holiday in that year.
| MAXIMUM LOANS IN 2001/2002 | | | Maximum available | Amount that depends on family income | Amount that does not depend on family income | | Full Year Rates (Year 1 & Year 2)
Students living away from their parents home and studying in: | | London | £4,815 | £3,610 | £1,205 | | Elsewhere | £3,905 | £2,930 | £975 | | | | | | | Full Year Rates (Year 1 & Year 2)
Students living with their parents: | | Anywhere in UK | £3,090 | £2,320 | £770 | | | | | | | Final Year Rates
Students living away from their parents home and studying in: | | London | £4,175 | £3,130 | £1,045 | | Elsewhere | £3,390 | £2,545 | £845 | | | | | | | Final Year Rates
Students living with their parents: | | Anywhere in UK | £2,700 | £2,020 | £680 | | | | | |
How is the loan calculated?
�??London�?� rate applies to students attending courses at the University of London or at colleges within the area, which includes the City of London and the Metropolitan Police District.
You may be taking a postgraduate course of initial teacher training (ITT) either full time or in some cases part time. If it is full time, you can get a loan at the relevant full-year rate if the course lasts for only one year. If it lasts for more than one year, the loan in the final year is at the final-year rate. If it is a part-time ITT course, the maximum loan will depend on how much full-time study your course involves. Your LEA can give you more advice.
You can get an extra amount of income-assessed loan to cover each extra week you have to be on your course above 30 term-time weeks (plus the short vacations). If you have to be on the course for 45 weeks or more in any 12-month period, you will get an extra amount of loan as if you were studying for 52 weeks. The most you can get each week is:
* £88 (in London)
* £67 (elsewhere)
* £46 (parental home)
If you study abroad for eight or more weeks in a row as a necessary part of your course, you may be eligible for a higher rate of loan. This will depend on the country where you study. Your LEA will be able to tell you whether or not the higher rate of loan applies to your chosen country in 2001/02.
For more information on Student Loans check the SLC website.
Or, alternatively, contact your Local Education Authority or LEA
Related Articles
Provided by The Student Zone (United Kingdom) |
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